Originally designed as an underlying technology for Bitcoins, Blockchain is a Distributed Ledger Technology used to store data in form of Batches called blocks which are linked together in a consecutive order to form a continuous trail of data.
Blockchain technology is based on a non-destructive way to track information changes over time. Which is similar to the old method of General Financial Ledger. It stores data from the very beginning of the transaction and records all changes made to data over time. This allows having a clear understanding of information and changes made to it over time.
Unlike the age-old ledger system where data stores in a book or single file in a computer database. However, blockchain data decentralizes and stored in a large network of computers. Which makes it difficult to get tampered with and makes it more reliable for users to store information.
It could be a Private Blockchain where data is restricted to a group of people, a Public Blockchain where data is available for everyone in the system, or a Hybrid Blockchain where certain data is made public and the rest can be made private.
HOW BUSINESSES CAN ADAPT TO BLOCKCHAIN TECHNOLOGY?
Since It represents the data in decentralized form there are many benefits to businesses from this. It creates more trust in data and avoids the risk of data tampering.
It works on the technique of Proof-of-work to change data so if one has to make changes to data they will first have to solve a cryptographic puzzle to record the transaction. Additionally, They will be sharable among all systems. Therefore, a new block adds to the blockchain holding the transaction. Besides that, It allows us to cut intermediaries and allowing peer to peer transaction at the same time which ensure the reliability and easy processing of data which directly can save us time/money.
This huge flexibility is bringing a huge shift in the way businesses used to work and many businesses nowadays are adopting this latest technology for business.
Here are few examples of how few sectors transform by using Blockchain Technology:
• BANKING AND TRANSACTION
Bitcoin-based Remittance services. This Technology helps in sending money across borders instantly and with very little transaction charge. Besides that, Remittance services alone is a $600 Billion industry that will revolutionize soon through blockchain technology.
A report by IBM suggests that by 2018 20% of the banks will be using Blockchain Technology.
• TRANSPORTATION AND RIDE-SHARING INDUSTRY
Ridesharing decentralized application. This technology can be useful to make decentralized apps. Which will allow car owners and users to arrange rides on personal terms without getting a third party inclusion in it.
This is going to change the way UBER and OLA operate which is a huge sector of services.
• CYBER SECURITY
Blockchain technology uses advanced cryptography for making changes in data. As well as, the Proof-of-work technique makes data more secure plus difficult to hack.
Data hacking is one of the main problems tech companies are facing around the globe and lots of ineffective efforts were made earlier to secure data from hackers.
In such scenarios blockchain technology can eliminate that problem to a larger extent.
• SUPPLY CHAIN MANAGEMENT INDUSTRY
Decentralized supply chain management application. Additionally, through Blockchain technology transactions can keep in a decentralized record. It can monetize safely and clearly which can reduce time delays, human mistakes which directly impact costs and wastage of material.
Apart from these, there are many such sectors that revolutionize by Blockchain technology.
On one side where we are seeing Blockchain making so much difference in various sectors. Besides that, there is still debate going on whether this is good or we should stick to a centralized system for our ecosystem.
Industry experts say there is always a debate on the adoption of big technologies like Blockchain Technology. Because they bring a shift in the present industry as many companies will have to change their business model if they adopt this. However, if we look at today’s pattern of how industries are adopting customer-oriented approaches many believe that BLOCKCHAIN TECHNOLOGY IS HERE TO STAY.
We at Stimulus thrive to work on latest technology to help businesses stay ahead. Talk to us to know how we can help you by integrating blockchain technology to your business.